DBS projects $30 billion-$40 billion inflows from RBI's swap facilities, easing pressure on the Indian rupee. The forecast signals growing confidence in India's currency markets as foreign investors seek opportunities in Asia's third-largest economy.

The swap facility mechanism allows the central bank to provide foreign currency liquidity to commercial banks, helping stabilize the rupee. This capital influx represents a significant shift from earlier concerns about the rupee potentially reaching 100 per dollar.

Market participants now view the rupee with increased optimism, with reduced expectations of further depreciation. The substantial foreign inflow estimates provide tangible support for India's currency, potentially attracting additional investment to the region.